DGRO: The Rate Backdrop Has Turned, But It Is Still A Well Balanced Dividend Growth Fund (Downgrade To Buy)
I downgrade iShares Core Dividend Growth ETF from Strong Buy to Buy, reflecting a shift in macro and sector dynamics. DGRO's relative positioning remains attractive versus peers SCHD and VIG, balancing tech exposure and dividend growth amid higher-for-longer rates. The rate cut thesis has unraveled, diminishing the yield proposition and shifting DGRO's use case to total return and defensive allocations.